Scope statements
Health and Family Services
Subject
The Wisconsin Department of Health and Family Services (Department) proposes to repeal and recreate ch.
HFS 149, rules relating to the selection and monitoring of vendors for the special supplemental nutrition program for women, infants and children (WIC).
Policy analysis
Under the Special Supplemental Nutrition Program for Women, Infants and Children (WIC), the federal government provides supplemental foods and nutrition education through payment of cash grants to states that administer the program through local agencies at no cost to eligible persons. The WIC program serves as an adjunct to good health care during critical times of growth and development, in order to prevent the occurrence of health problems. In Wisconsin, the WIC program has approximately 112,000 certified participants, comprised of low-income pregnant and breastfeeding women, infants and children under 5 years of age. Seventy-one local WIC projects (located in city and county public health departments, private non-profit organizations, and one hospital) administer WIC in designated project service areas. These services include health screening, nutrition assessment and counseling, referrals to other health and social services, and vouchers to purchase nutritious foods at authorized grocery stores and pharmacies (vendors). The Wisconsin WIC program operates under State Plan requirements pursuant to
7 CFR 246 and is responsible for the authorization of some 1,000 vendors to provide food to WIC participants.
Chapter
HFS 149 was created in 1986, to establish conditions under which the Department authorizes grocery stores and pharmacies to be vendors for the special supplemental nutrition program for the WIC program. Chapter
HFS 149 currently addresses vendor authorization, rights and responsibilities and site visits, actions that constitute vendor failure to comply with program requirements, waivers and appeal procedures. Chapter
HFS 149 has remained largely unchanged since 1986, except for an amendment relating to the creation of vendor peer groups in early 2006.
Changes to both the controlling state statute, federal statutes, and federal regulations over the past few years require the Department to revise ch.
HFS 149. By incorporating and reconciling pertinent provisions from s.
253.06, Stats.,
7 CFR 246, and Interim Rule “Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Vendor Cost Containment" that is effective December 29, 2005, the Department hopes to make ch.
HFS 149 a more accurate and useful source of provisions for the
Department, vendors, and WIC participants. The revisions will also assure more equitable treatment of authorized stores, while improving the integrity of the program. Pursuant to the Department's authority under s.
253.06, Stats., and requirements of
7 CFR 246, and the interim rule, the Department intends to propose the following changes to ch.
HFS 149:
1.
Add vendor “business integrity" provisions that may include provisions concerning fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, and obstruction of justice, in addition to other types of convictions or civil judgments identified by the Department.
2.
Allow immediate authorization of vendors in certain circumstances.
3.
Allow vendors who fail an initial site visit to submit a correction notice and be granted a second site visit within six months without having to submit a new application.
4.
Significantly modify and expand vendor enforcement provisions, which may include the addition of several new offenses; changes in the length of disqualification periods; reciprocal food stamp program disqualification; and the addition of forfeitures that may be imposed on a vendor in place of disqualification; and allow the Department to summarily suspend a vendor from the WIC program without a prior hearing if the vendor provided cash or nonfood items in exchange for drafts, has been convicted of a criminal offense in any activity substantially related to providing or claiming reimbursement for services under the food stamp program, any other food and nutrition service program operated by the USDA or who has a history of disqualification or noncompliance with any of these programs.
Entities affected by the rule
The entities that will be directly affected by the proposed rules include Wisconsin grocery stores and pharmacies that apply for initial authorization in WIC, and all WIC authorized stores. Some warehouses that supply food to WIC-authorized stores may be affected if they are not authorized by the state WIC program to sell infant formula to WIC stores. WIC participants that abuse the WIC program will also be affected.
Comparison with federal requirements
The Wisconsin WIC Program operates under requirements set forth in
7 CFR 246: Special Supplemental Nutrition Program for Women, Infants and Children (WIC). An interim rule that amends the regulations to strengthen vendor cost containment is effective December 29, 2005.
7 CFR 246 and the interim rule include legislative requirements that affect the selection, authorization, and reimbursement of retail vendors; and provide a basis for taking action against vendors, participants, and persons serving as proxies for participants who are abusing or defrauding the WIC Program. A revision to HFS 149 is necessary in order to address requirements in
7 CFR 246 and the interim rule.
Statutory authority
Staff time required
The Department estimates it will take 100 hours of staff time to develop the proposed rules. The Department will also use an advisory committee that consists of members of the public most affected by the proposed rules to participate in drafting the proposed rules.
Revenue
Subject
S.
Tax 8.63, relating to liquor wholesaler warehouse facilities.
Objective of the rule. The objectives of the proposed rule are to establish minimum requirements for warehouse facilities on premises described in liquor wholesalers' permits issued by the Department under s.
125.54, Stats., and for periodic site inspections by the Department of such warehouse facilities.
Policy analysis
Existing policies are as set forth in the rules. No new policies are being proposed, other than to reflect law changes and court decisions. If the rules are not changed, they will be incorrect in that they will not reflect current law or current Department policy.
Entities affected by the rule
Those applying for or holding a liquor wholesalers' permit under s.
125.54, Stats., and those liquor wholesalers applying for a warehouse permit under s.
125.19, Stats.
Comparison with federal requirements
The department is not aware of any existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Statutory authority
125.54 (7) (d), Stats.
Staff time required
The department estimates it will take approximately 100 hours to develop this rule order.
